US Cellular 2015 Annual Report Download - page 46

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To the extent that existing competitors or new entrants acquire low-band (600 MHz) spectrum in U.S. Cellular markets in
Auction 1000, U.S. Cellular could face increased competition over time from competitors that hold more efficient and
superior low-band spectrum, which would have an adverse effect on TDS’ wireless competitive position.
In January 2016, TDS entered into an agreement to purchase a 700 MHz A Block license for $36.0 million. In February
2016, TDS entered into multiple agreements with third parties that provide for the transfer of certain AWS and PCS
spectrum licenses and approximately $30 million in cash to U.S. Cellular, in exchange for U.S. Cellular transferring
certain AWS, PCS and 700 MHz licenses to the third parties.
Variable Interest Entities
TDS consolidates certain entities because they are ‘‘variable interest entities’’ under GAAP. See Note 14 — Variable
Interest Entities in the Notes to Consolidated Financial Statements for additional information related to these variable
interest entities. TDS may elect to make additional capital contributions and/or advances to these variable interest
entities in future periods in order to fund their operations.
Common Share Repurchase Programs
In 2013, the Board of Directors of TDS authorized a $250 million stock repurchase program for the purchase of TDS
Common Shares from time to time. The maximum dollar value of shares that may yet be purchased under this program
was $201.2 million as of December 31, 2015. This authorization does not have an expiration date.
In 2009, the Board of Directors of U.S. Cellular authorized the repurchase from time to time of up to 1,300,000 Common
Shares on an annual basis beginning in 2009 and continuing each year thereafter, on a cumulative basis. As of
December 31, 2015, there were 4,755,298 U.S. Cellular Common Shares available for purchase under this program,
which increased by 1,300,000 Common Shares on January 1, 2016. This authorization does not have an expiration date.
There were no TDS and limited U.S. Cellular share repurchases in 2015. Depending on their future financial performance,
construction, development or acquisition programs, and available sources of financing, TDS and U.S. Cellular may not
have sufficient liquidity or capital resources to make significant share repurchases. Therefore, there is no assurance that
TDS or U.S. Cellular will make any significant amount of share repurchases in the future.
For additional information related to the current TDS and U.S. Cellular repurchase authorizations and repurchases made
during 2015, 2014 and 2013, see Note 16 — Common Shareholders’ Equity in the Notes to Consolidated Financial
Statements.
Off-Balance Sheet Arrangements
TDS had no transactions, agreements or other contractual arrangements with unconsolidated entities involving
‘‘off-balance sheet arrangements,’’ as defined by SEC rules, that had or are reasonably likely to have a material current
or future effect on its financial condition, results of operations, liquidity, capital expenditures or capital resources.
Dividends
TDS paid quarterly dividends per outstanding share of $0.1410 in 2015, $0.1340 in 2014 and $0.1275 in 2013. TDS
increased the dividend per share to $0.1480 in the first quarter of 2016. See Note 16 — Common Shareholders’ Equity
in the Notes to Consolidated Financial Statements for additional information. TDS has no current plans to change its
policy of paying dividends.
38
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS